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Scoutmob Attracts Investors and Partners by Saying It’s Not a Daily Deals Company


Scoutmob was able to attract $3.25 million in new funding and a major new payments partner by pitching itself as a mobile company and not as a fledgling competitor in the daily deals space.

The Atlanta-based company’s mobile app tries to be a resource to consumers who are looking for local merchants and events, sort of like the Web’s original CitySearch service from years ago — except that it’s on mobile. The app also distributes coupons to restaurants, but instead of charging consumers for the deals, like Groupon does, they are free, and merchants pay a flat rate to Scoutmob each time one is redeemed.

Investors in the company’s second round include AOL Ventures, New Atlantic Ventures, Capital Broadcasting, Cox Enterprises and Thrillist CEO Ben Lerer. To date, Scoutmob has raised $5 million, which means that even if it wanted to, it doesn’t have the resources to go up against Groupon and LivingSocial.

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